Auditor Report of Chambal Breweries & Distilleries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/s. CHAMBAL
BREWERIES & DISTILLERIES LIMITED (the "company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement,whether due to fraud or error..

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.

Opinion

In our opinion and to our best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.

(a) In case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2015.

(b) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended 31st March, 2015.

(c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, we report that:

(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.

(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;

(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;

(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;

(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and

(f) with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:

i. the Company does not have any pending litigation which would impact
its financial position.

ii. the Company does not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.

iii. There has been no amount to be transferred to the Investor
Education and Protection Fund by the Company.

Annexure to the Auditors report of the even date to the members:

The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the financial

statements for the year ended 31 March 2015, we report that:

(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.

(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.

ii (a) The physical verification of inventory has been conducted at
reasonable intervals by the management.

(b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventory
followed by the management were found reasonable and adequate in
relation to the size of the company and the nature of its business.

(c) In our opinion the company has maintained proper records of the
inventory. The discrepancies between physical stock and the book stock
were not material and have properly dealt with in books of accounts.

(iii) (a) The Company has granted loans to two parties covered in the
register maintained under section 189 of the Companies Act, 2013
(''the Act'').

(b) In the case of the loans granted to the related party listed in the
register maintained under section 189 of the Act, the borrowers have
been regular in the payment of the interest as stipulated. The terms of
arrangements do not stipulate any repayment schedule and the loans are
repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is
not applicable to the Company in respect of repayment of the principal
amount.

(c) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section189 of the Act.

(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of goods.. We have not observed
any major weakness in the internal control system during the course of
the audit.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the activities done
by the Company.

(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,the
Company did not have any dues on account of employees'' state insurance
and duty of excise.

According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 March
2015 for a period of more than six months from the date they became
payable.

(b) According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute.

(c) According to the information and explanations given to us there
were no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act.

(viii) The Company have accumulated losses of Rs. 2690696/- at the end
of the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.

(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.

(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.

(xi) The Company did not have any term loans outstanding during the
year.

(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.

We have audited the accompanying financial statements of M/s. CHAMBAL
BREWERIES & DISTILLERIES LIMITED (the "company"), which comprise the
Balance Sheet as at March 31, 2014, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 ("the Act").This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.

An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for audit opinion.

Opinion

In our opinion and to our best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.

(a) In case of Balance Sheet, of the state of affairs of the Company as
at 31 st March, 2014.

(b) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended 31 st March, 2014.

(c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.

(b) In our opinion, proper books of accounts are required by the law
have been kept by the company, so far as appears from our examination
of the books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.

(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211 (3C) of the Act;

(e) On the basis of the written representation received from the
Directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 st March, 2014 from being appointed
as a directors in terms of Section 274 (1 )(g) of the Act.

ANNEXURETOTHE AUDITORS REPORT OF THE EVEN DATE TO THE MEMBERS:

i) A) The company is maintained proper records to show full particulars
including quantitative details & situation of its fixed assets.

B) The fixed assets have been physically verified by the management
during the year our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
company and the nature of the assets. The discrepancies noticed have
been properly dealt with in the book of accounts,

C) The assets disposed off during the year are not significant and
therefore do not affected the going concern assumption,

ii) A) The physical verification of inventory has been conducted at
reasonable intervals by management.

B) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventory
followed by the management were found reasonable and adequate in
relation to the size of the company and the nature of its business.

C) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the book of
accounts.

iii) A) As informed to us, during the year the company has not taken
any unsecured loan from the parties covered in the Register maintained
under section 301 of the Act.

iv) In our opinion according to the information and explanation given
to us there are adequate internal control procedure commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods. During the
course of our audit, no major weakness has been noticed in the internal
control.

v) A) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transaction that need to be entered into the register
maintained under section 301 of the Act have been properly in the said
register.

B) In our opinion and according to the information and explanations
given to us the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from public.

vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.

viii) The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 for the
company.

ix) A) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including IncomeTax, SalesTax, Excise Duty, Service Tax and any other
statutory dues.There are no outstanding statutory dues for a period of
more than six month from the date they become payable.

B) According to the information and explanation given to us the company
has no disputed dues of sale tax/ income tax/ excise duty/ cess and and
any other statutory dues.

x) The company has accumulated losses of Rs.2799040/- at the end of the
financial year and has incurred cash loss of Rs.2006361 during the year
but has not incurred any cash loss in the immediately year preceding.

xi) Based on our audit procedure and on the information and
explanations by the management, the company has not defaulted in
repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and
explanation given to us, the company has not granted loans and advances
on the basis of security by way of pledge of shares, debenture and
other security.

xiii) The company is not a chil/nidhi/natural benefit fund/ society and
clauses xii of the order is not applicable.

xiv) The company is not dealing or trading in shares, securities,
debenture and other investment.

xv) On the basis of the information and explanation given to us the
company has not given any guarantee for loans taken by other from bank
or financial institutions.

xvi) The company has not taken any term loan during the year.

xvii) On the basis of the information and explanation given to us the
company has not used funds raised on short term basis for investment in
long term use and vice versa.

xviii) During the year, the company has not made any preferential
allotment of share of parties and companies covered in the Register
maintained under section 301 of the Act.

xix) The company did not have any outstanding debentures during the
year.

xx) The company has not raised any money by public issues during the
year.

xxi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the company had been noticed or reported during the course or our
audit.

We have audited the accompanying financial statements of M/s. CHAMBAL
BREWERIES And DISTILLERIES LIMITED (the "company"), which comprise the
Balance Sheet as at March 31, 2013, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.

An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for audit opinion.

Opinion

In our opinion and to our best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.

(a) In case of Balance Sheet, of the state of affairs of the Company as
at 31 st March, 2013.

(b) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended 31 st March, 2013.

(c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.

(b) In our opinion, proper books of accounts are required by the law
have been kept by the company, so far as appears from our examination
of the books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.

(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211 (3C) of the Act;

(e) On the basis of the written representation received from the
Directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 st March, 2013 from being appointed
as a directors in terms of Section 274 (1 )(g) of the Act.

Annexure to the Auditors report of the even date to the members:

i) A) The company is maintained proper records to show full particulars
including quantitative details & situation of its fixed assets.

B) The fixed assets have been physically verified by the management
during the year our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
company and the nature of the assets. The discrepancies noticed have
been properly dealt with in the book of accounts,

C) The assets disposed off during the year are not significant and
therefore do not affected the going concern assumption,

ii) A) The physical verification of inventory has been conducted at
reasonable intervals by management.

B) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventory
followed by the management were found reasonable and adequate in
relation to the size of the company and the nature of its business.

C) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the book of
accounts.

iii) A) As informed to us, during the year the company has not taken
any unsecured loan from the parties covered in the Register maintained
under section 301 of the Act.

iv) In our opinion according to the information and explanation given
to us there are adequate internal control procedure commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods. During the
course of our audit, no major weakness has been noticed in the internal
control.

v) A) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transaction that need to be entered into the register
maintained under section 301 of the Act have been properly in the said
register.

B) In our opinion and according to the information and explanations
given to us the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from public.

vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.

viii) The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 for the
company.

ix) A) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including IncomeTax, Sales Tax, Excise Duty, Service Tax and any other
statutory dues.There are no outstanding statutory dues for a period of
more than six month from the date they become payable.

B) According to the information and explanation given to us the company
has no disputed dues of sale tax/ income tax/ excise duty/ cess and any
other statutory dues.

x) The company has accumulated losses of Rs.656445/- at the end of the
financial year and has not incurred cash loss during the year nor has
incurred any cash loss in the immediately year preceding.

xi) Based on our audit procedure and on the information and
explanations by the management, the company has not defaulted in
repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and
explanation given to us, the company has not granted loans and advances
on the basis of security by way of pledge of shares, debenture and
other security.

xiii) The company is not a chit/nidhi/natural benefit fund/ society and
clauses xii of the order is not applicable.

xiv) The company is not dealing or trading in shares, securities,
debenture and other investment.

xv) On the basis of the information and explanation given to us the
company has not given any guarantee for loans taken by other from bank
or financial institutions.

xvi) The company has not taken any term loan during the year.

xvii) On the basis of the information and explanation given to us the
company has not used funds raised on short term basis for investment in
long term use and vice versa.

xviii) During the year, the company has not made any preferential
allotment of share of parties and companies covered in the Register
maintained under section 301 of the Act.

xix) The company did not have any outstanding debentures during the
year.

xx) The company has not raised any money by public issues during the
year.

xxi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the company had been noticed or reported during the course or our
audit.

1. We have audited the attached Balance Sheet of M/s. CHAMBAL
BREWERIES & DISTILLERIES LIMITED as at 31st March, 2012 and also the
Profit and Loss Account of the Company for the Year ended on that date
annexed there to. These financial statements are the responsibility of
the Company's Management; our responsibility is to express an opinion
on these financial statements based on our audit:

2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation of the financial statement. We believe that our audit
provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956. We enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order in so far as
they are applicable to the company.

4. Further to our comments in the Annexure referred to in paragraph in
(3) & subject to paragraph (4) above, we state that

(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.

(b) In our opinion, proper books of accounts are required by the law
have been kept by the company, so far as appears from our examination
of the books.

(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet and Profit & Loss Account death
with the report comply with the mandatory Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956.

(e) On the basis of the written representation received from the
Director's and taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2012 from being appointed
as a directors in terms of clause (g) of sub-section (1) of section 274
of the Companies Act 1956.

(f) In our opinion and to our best of our information and according to
the explanation given to us, the Profit & Loss A/

c. and Balance Sheet read together with other notes thereon in
Schedule 16 give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.

(i) In case of Balance Sheet, of the state of affairs of the Company as
at 31 st March, 2012.

(ii) In the case of the Profit and Loss Account, of the Profit of the
company for the year ended 31st March, 2012.

(iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.

Annexure to the Auditors report of the even date to the members:

i) A) The company is maintained proper records to show full particulars
including quantitative details & situation of its

fixed assets.

B) The fixed assets have been physically verified by the management
during the year our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
company and the nature of the assets. The discrepancies noticed have
been properly dealt with in the book of accounts,

C) The assets disposed off during the year are not significant and
therefore do not affected the going concern assumption,

ii) A) The physical verification of inventory has been conducted at
reasonable intervals by management.

B) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventory
followed by the management were found reasonable and adequate in
relation to the size of the company and the nature of its business.

C) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the book of
accounts.

iii) A) As informed to us, during the year the company has not taken
any unsecured loan from the parties covered in the

Register maintained under section 301 of the Act. The company has
granted unsecured loans to the six parties and one company covered
under section 301 of the act.

Opening Amount Amount Closing

Balance Granted Recovered Balance

8,19,08,049/- 30,70,000/- 2,22,04,545/- 6,27,73,504/-

B) The rate of interest and other terms and conditions are prejudicial
to the interest of the company.

C) As informed to us, during the year the company has started the
process of recovering the loans granted.

iv) In our opinion according to the information and explanation given
to us there are adequate internal control procedure commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods. During the
course of our audit, no major weakness has been noticed in the internal
control.

v) A) Based on the audit procedures applied by us and according to the
information and explanation provided by the

management, we are of the opinion that the transaction that need to be
entered into the register maintained under section 301 of the Act have
been properly in the said register.

B) In our opinion and according to the information and explanations
given to us the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from public.

vii) The company has an in house internal audit system , which in our
opinion is commensurable with the size of the company and the nature of
its business

viii) The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 for the
company.

ix) A) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including Income Tax, Sales Tax, Excise Duty, Sen/ice Tax and any other
statutory dues. There are no outstanding statutory dues for a period of
more than six month from the date they become payable.

B) According to the information and explanation given to us the company
has no disputed dues of sale tax/ income tax/ excise duty/ and and
any other statutory dues.

x) The company has accumulated losses of Rs.7,67,641/- at the end of
the financial year and has neither incurred cash loss during the year
nor has incurred any cash loss in the immediately year preceding.

xi) Based on our audit procedure and on the information and
explanations by the management, the company has not defaulted in
repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and
explanation given to us, the company has not granted loans and advances
on the basis of security by way of pledge of shares, debenture and
other security.

xiii) The company is not a chit/n id hi/natural benefit fund/ society
and clauses xii of the order is not applicable.

xiv) The company is not dealing or trading in shares, securities,
debenture and other investment.

xv) On the basis of the information and explanation given to us the
company has not given any guarantee for loans taken by other from bank
or financial institutions.

xvi) The company has not taken any term loan during the year.

xvii) On the basis of the information and explanation given to us the
company has not used funds raised on short term basis for investment in
long term use and vice versa.

xviii) During the year, the company has not made any preferential
allotment of share of parties and companies covered in the Register
maintained under section 301 of the Act.

xix) The company did not have any outstanding debentures during the
year.

xx) The company has not raised any money by public issues during the
year.

xxi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the company had been noticed or reported during the course or our
audit.

For BIPIN ZAVAR & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN - 121523W

PLACE : MUMBAI

DATED : 14/08/2012

Sd/-

BIPIN P. ZAVAR

(Proprietor)

M.NO. 110250.

Mar 31, 2010

1. We have audited the attached Financial Statements of M/s. CHAMBAL
BREWERIES & DISTILLERIES LIMITED as at 31st March, 2010. These
financial statements are the responsibility of the Company's
Management; our responsibility is to express an opinion on these
financial statements based on our audit:

2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation of the financial statement. We believe that our audit
provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956. We enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order in so far as
they are applicable to the company.

4. Further to our comments in the Annexure referred to in paragraph in
(3) & subject to paragraph (4) above, we state that :

(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.

(b) In our opinion, proper books of accounts are required by the law
have been kept by the company, so far as appears from our examination
of the books.

(c) The Financial Statements dealt with by this report are in agreement
with the books of account.

(d) In our opinion, the Financial Statements dealt with the report
comply with the mandatory Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.

(e) On the basis of the written representation received from the
Director's and taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2010 from being appointed
as a directors in terms of clause (g) of sub-section (1) of section 274
of the Companies Act 1956.

(f) In our opinion and to our best of our information and according to
the explanation given to us, the Profit & Loss A/c. and Balance Sheet
read together with other notes thereon in Schedule 16 give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India. (i) In case of
Balance Sheet, of the state of affairs of the Company as at 31st March,
2010.
[ii) In the case of the Profit and Loss Account, of the Loss of
the company for the year
ended 31st March, 2010. (iii) In the case of the Cash Flow Statement,
of the cash flow for the year ended on that date.

Annexure to the Auditors report of the even date to the members:

i) A) The company is maintained proper records to show full particulars
including quantitative details & situation of its fixed assets.

B) The fixed assets have been physically verified by the management
during the year our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
company and the nature of the assets. The discrepancies noticed have
been properly dealt with in the book of accounts,

C) The assets disposed off during the year are not significant and
therefore do not affected the going concern assumption,

ii) A) The physical verification of inventory has been conducted at
reasonable intervals by management.

B) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventory
followed by the management were found reasonable and adequate in
relation to the size of the company and the nature of its business.

C) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the book of
accounts.

iii) As informed to us, during the year the company has taken unsecured
loan from three parties covered in the Register maintained under
section 301 of the Act. The maximum amount outstanding during the year
is Rs.596000/-.

iv) In our opinion according to the information and explanation given
to us there are adequate internal control procedure commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods. During the
course of our audit, no major weakness has been noticed in the internal
control.

v) A) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transaction that need to be entered into the register
maintained under section 301 of the Act have been properly in the said
register.

B) In our opinion and according to the information and explanations
given to us the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from public.

vii) The company doesn't have any internal audit system.

viii) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 for the
company.

ix) A) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including Income Tax, Sales Tax, Excise Duty, Service Tax and any other
statutory dues. There are no outstanding statutory dues for a period of
more than six month from the date they become payable.

B) According to the information and explanation given to us the company has
no disputed dues of sale tax/ income tax/ excise duty/ cess and any
other statutory dues.

x) The company has accumulated losses of Rs.999010/- at the end of the
financial year and has incurred cash loss of Rs. NIL during the year
and has incurred cash loss of Rs.241991/- in the immediately year
preceding.

xi) Based on our audit procedure and on the information and
explanations by the management, the company has not defaulted in
repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and
explanation given to us, the company has not granted loans and advances
on the basis of security by way of pledge of shares, debenture and
other security.

xiii) The company is not a chil/nidhi/natural benefit fund/ society and
clauses xii of the order is not applicable.

xiv) The company is dealing or trading in shares, securities, debenture
and other investment.

xv) On the basis of the information and explanation given to us the
company has not given any guarantee for loans taken by other from bank
or financial institutions.

xvi) The company has not taken any term loan during the year.

xvii) On the basis of the information and explanation given to us the
company has not used funds raised on short term basis for investment in
long term use and vice versa.

xviii) During the year, the company has not made any preferential
allotment of share of parties and companies covered in the Register
maintained under section 301 of the Act.

xix) The company did not have any outstanding debentures during the
year.

xx) The company has not raised any money by public issues during the
year.

xxi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the company had been noticed or reported during the course or our
audit.